How financial planning can significantly boost your wellbeing in retirement

Financial worries can impact you in retirement and affect your day-to-day life

It will likely come as no surprise that money worries can result in stress. What might be less apparent is that this stress can significantly affect your overall wellbeing in retirement. 

According to Money Marketing, the UK’s overall retirement confidence score fell to 4.2 out of 10 in 2025, compared to:

• 4.6 in 2024
• 6.9 in 2023. 

 This is the lowest level since tracking began. 

This uncertainty and inability to make decisions about retirement could stem from the fact that it’s such a significant milestone in your life.

For potentially the first time, you’re stepping away from a regular income and living on savings you’ve built up for years. 

This change can feel daunting, especially if you aren’t confident about how much you’ve accumulated. 

Moreover, you can access your pension flexibly, thanks to Pension Freedoms. While this may give you greater control over how and when you take an income, you could question how to withdraw your money sustainably over many years.

People are living longer than ever, too, with the BBC stating that there were an estimated 16,650 centenarians in the UK in 2024 – a record high. This means your retirement could span 30 or even 40 years. 

Without a clear idea of how your finances might hold out over time, it’s natural to feel cautious about spending. 

And, when your confidence is low, even small decisions can feel overwhelming. The uncertainty can even spill out into your everyday life, and you may find yourself holding back entirely from experiences you’d otherwise enjoy. 

A financial planner will help you create a bespoke plan that supports your ideal lifestyle

Thankfully, a bespoke financial plan created by a professional could help you build a picture of how your wealth will support your dream lifestyle in retirement. 

Indeed, they will begin by understanding your unique goals for the next phase of your life. This might include:

• The lifestyle you’re working towards
• What you want your days to look like
• What really matters to you.

This ideal retirement is individual to you, so your retirement plan needs to be too. Your bespoke plan should be built around your ambitions, rather than your finances.

So, once these priorities are clear, a planner can help you make sense of the more practical aspects of your retirement. 

For instance, they could show how your income, savings, and pensions all fit together. Knowing how much you can spend can remove much of the uncertainty that might otherwise prevent you from making day-to-day decisions.

At the same time, a planner could help you prepare for the unexpected. Life rarely goes exactly to plan, and you may face experiences that require you to dip into your savings.

Having a strategy for dealing with these unexpected costs or emergencies can make a significant difference to your financial and emotional wellbeing. 

This might include establishing or increasing your emergency fund, so you don’t have to exhaust funds ringfenced for other purposes, which could affect your financial security in retirement.

Alternatively, if you’re diagnosed with a serious illness in retirement, financial protection could help you deal with day-to-day costs without prematurely spending too much of your retirement fund.

A financial planner can guide you in setting up these forms of protection in a way that suits your circumstances, helping you feel prepared rather than anxious about what might happen.

We will continue to support you as your circumstances change

It’s vital to remember that you can’t just “set and forget” your retirement plan. Since you may spend decades in the next phase of your life, your needs, spending habits, and priorities may change.

This is why we develop an ongoing relationship with you, so you don’t have to deal with any changes alone. 

We can review your plans regularly and adapt them when needed, reassuring you that you’re still on track.

Ultimately, when you feel confident about your finances, it’s much easier to relax and enjoy retirement as a time to focus on experiences that bring you fulfilment. 

To find out more about how we can help you bolster your wellbeing in retirement, please call us at 01822 617 960, email info@hansfordbell.co.uk or fill in our online contact form and we’ll be in touch.

Please note

This article is for general information only and does not constitute advice. The information is aimed at retail clients only.

All information is correct at the time of writing and is subject to change in the future.

Please do not act based on anything you might read in this article. All contents are based on our understanding of HMRC legislation, which is subject to change.

A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Past performance is not a reliable indicator of future performance. 

The tax implications of pension withdrawals will be based on your individual circumstances. Thresholds, percentage rates, and tax legislation may change in subsequent Finance Acts. 

Your pension income could also be affected by the interest rates at the time you take your benefits. The tax implications of pension withdrawals will be based on your individual circumstances, tax legislation, and regulation, which are subject to change in the future.